Two elements to this – dismissing your current SM the right way, and finding the most suitable replacement. The first element has been covered in the discussion to date. But choosing the right SM is much tougher. A word of mouth recommendation seems to be the easiest way to go, but I can’t remember the last time someone told me that they have a great SM. Here are my thoughts on how to choose a new SM.
1. Assess why you are unhappy with your current SM. Is it responsiveness? Cost? Competence? Are you 100% certain that there is no way these issues can be resolved with the current SM? If the current SM is a lost cause, then you want your new SM to be strong in the areas that are currently deficient.
2. Determine how hands-on the owners will be. How much do you want to outsource to your SM?
3. Are there any features the owners need, eg, online lodgement of issues, a variety of levy payment methods, access to an online portal? Do you have a lot of defects? Problems with by-law violations?
Having come up with a shopping list of needs, try to come up with a list of possible SMs. My own feeling is that the SM needs to have a local presence (ie, managing other properties in the area). Talk to the other owners – see if they know of any good SMs. You’ll probably spend a fair bit of time Googling and looking at websites. Review websites are worth a look (eg, productreview.com.au) but bear in mind that reviews will be very skewed to the negative (ie, people who have had a recent bad experience with their current SM and want to vent). Having sad that, our current (poor) SM is listed and the feedback is pretty accurate.
Next step is to contact your shortlist of possible SMs and ask them for a written proposal. Explain your current situation, why you want to change SMs, and your special needs (ie, shopping list). Ask them for details of properties they manage in your area. Get a copy of their proposed agreement. And cost, of course. Many SMs have a variety of packages at different costs.
Once the owners have assessed and ranked the proposals, get a couple of SMs to come out to the property to talk to the owners. Ensure they bring the person who will be the actual strata manager for your property, not just the principal. Think about some specific scenarios, eg, “resident X is constantly parking in a visitor spot”. Get them to explain how they would deal with this, how long the various steps take, and how much of this work would be covered by the standard monthly fee.
Finally, ensure that the SM choice is a group decision – not just the Chairman or EC’s favourite. And don’t dismiss your current SM until you have chosen the new one.
(Whale said …… now that’s what I’m talking about!!)